Wes Read (CPA, CFP®) addresses dental practice sellers who often want the sale to happen quickly. He describes the emotional and practical discouragement when buyers delay for weeks or months and then back out, and he recommends using escrow and an earnest money deposit to improve the odds a deal will close.
I find that most sellers, once they decide to sell and they start mentally pivoting, they want it to go quickly. And it's a huge kind of blow to seller. When a buyer takes a month and a half, two months, and then backs out. It's really discouraging because you're thinking, I got to go through this process again. I got to find a buyer that's going to take a month or two, and then we got to go through this process. Then what if I lose that one as well? So with practice, orbit, and just in general, we're trying to create with escrow, we're trying to increase the odds of that deal moving forward and closing for the seller. This is why I tell all sellers recommend you use escrow, and we should do a earnest money deposit.
